Objectives: Chapter One
The following learning objectives for this chapter map to the curriculum design for our online university-level courses. These courses are offered through Utah State University, and result in the awarding of up to 6 hours of highly transferrable college credit. To learn more, check out the classroom link.
The nature of financial and managerial accounting information.
Identify five typical users of accounting information.
Distinguish between financial and managerial accounting.
Identify the United States private sector accounting standard setting body.
Identify the global accounting standard setting body.
Understand how technology has reshaped accounting from bookkeeping to a decision-making discipline.
Define the principle of historical cost.
Understand the trade off between relevance and reliability, particularly related to valuation issues.
The accounting profession and accounting careers.
Differentiate between public and private accounting.
What are key areas of service within a public accounting firm?
What is the significance of the CPA (or global equivalent) designation?
What are specialized areas of work within private accounting?
Name selected not-for-profit enterprises that employ accountants.
Name selected governmental agencies that employ many accountants.
Understand why ethical values are paramount within and to the accounting profession.
The accounting equation: Assets = Liabilities + Owners' Equity.
Know the accounting equation, and mathematical variations of this equation (e.g., assets - liabilities = owner's equity).
Define and cite examples of assets and liabilities.
What are three typical business entity forms?
Define retained earnings and identify the elements that cause it to change.
Know that dividends are not an expense.
Show the relationship between the fundamental accounting equation and the structure of the balance sheet.
How transactions impact the accounting equation.
Demonstrate how specific transactions impact the balance sheet without impacting the overall equality.
Distinguish between the terms revenue and net income.
The four core financial statements.
Understand what information is provided by financial reports.
Understand what useful information is not provided by financial reports.
Name the four basic financial statements.
Know the proper headings (with their dating) for the balance sheet, income statement, and statement of retained earnings.
Be able to prepare financial statements reflecting basic transaction information.
Develop an initial understanding of the form and content for a statement of cash flows.
Understand that cash flows from operating activities can differ from reported net income.
Understand the self-balancing interrelationships between the core financial statements.